I need help with FAFSA please?

Question

the email from them read

"Based on the information we have on record for you, your EFC is 24373. You

are not eligible for a Federal Pell Grant but you may be eligible for other

aid. Your school will use your EFC to determine your financial aid eligibility

for other federal grants, loans, and work study, and possible funding from your

state and school."

so what does this mean and what is an EFC?

Answer 1

That is the same thing that had happened to me, I am 21 and live with my parents still, even though they don't pay for my college they view your parents income and base it on that if I was eligible or not.  EFC stands for Expected Family Contribution.  So basically they expect your parents to be able to pay that much for your school.  Rip off isn't it..

Answer 2

I don't know where not anonymous went to college, but I can tell you that at the two I attended, one public and one private, the EFC was the exact amount my family had to pay before any financial aid kicked in.

Sure, if the total cost of attendance is below the EFC you don't have to pay that number, but you'll have to pay full cost.

Some schools only use the FAFSA EFC, but most private college also used a similar methodology called Profile. Profile counts many things FAFSA does not such as equity in your home. At those schools, your EFC is usually more than what FAFSA alone projects.

I have never seen a single person go to a school where cost of attendance is above EFC not have to pay that amount.

Oh yes, if you count an unsubsidized Stafford loan or Parent plus loan as financial aid, you can indeed take these rather than "pay" your EFC. But pay you will, with interest, in the final analysis.

Answer 3

It means that they expect you and your family to contribute $24,373 towards your education.   In essence unless you get scholarships you are probably going to have to pay cash for most of your education.  I haven't seen a EFC that high.  

Answer 4

EFC is just a code the school uses to determine what kinds and how much aid you will get.  This means that you have a fairly decent income and won't be getting any "need based" grants.  (meaning you or your family are not poor and earn a decent income).

It means you will be offered unsubsidized federal Stafford loans.  The max amount depends on your grade level and dependency status.  If you are a dependent freshman, you can borrow up to 5,500 a year.

This book is a great resource and will give you more details.

Answer 5

No, they don't expect your family to contribute $24,373 to the cost of your education. If everyone would only read the FAFSA site, you'd discover that this isn't how an EFC works.

The EFC, or Expected Family Contribution, is an index that is used by your school's financial aid office to determine what forms of aid you are eligible for.

The financial aid office uses your EFC to determine if you present "exceptional need" - if you do, you qualify for certain forms of financial aid known as "need-based aid". Applicants with EFCs below 4041 this year qualified for the best known need-based financial aid program, the Pell Grant. With a score of 24373, you're also not going to qualify for other need-based aid, like the FSEOG grant, or Federal Work Study.

The good news is that every student qualifies for financial aid, even if it's not need-based aid. The government's Stafford Loan program is available to almost all students, and it is the best form of educational loan available anywhere.

The Stafford has a low, fixed interest rate, it doesn't require a credit check or cosigner, your repayment obligation doesn't begin until 6-9 months after you have completed your education (or dropped out), and you have the right to request a temporary postponement of your repayment if you experience financial hardship when you get out of school.

If you are a first year, dependent undergraduate, you will be offered a Stafford loan of $5500. Obviously, that's a tiny fraction of the cost of an expensive private school, but it's also a nice chunk of the cost of attendance at a local community college or cheap state university option. You won't receive more federal aid if you choose an expensive school - the government doesn't "reward" students who want to attend pricey schools.

Another funding option that you will be eligible for is the PLUS loan. That's another government lending program, but it's available directly to the parents of undergraduate students. If your parents are interested in borrowing money to help pay the cost of your education, have them look into the PLUS program.

So - no. It's not true that you have to pay $24,373 - think about that - most people don't pay that kind of money for school, anyway. Why would the government expect you to pay $24,000 towards the cost of a $6000 year at a community college.

And for those who might want to question my statement that the EFC is NOT what you have to pay before financial aid kicks in - I draw your attention to the FAFSA website:

"The information you reported on your FAFSA is used to determine your Expected Family Contribution (EFC), which is calculated by a formula established by law. The EFC is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid (grants, loans or work-study) you would receive if you were to attend their school. If your EFC is below a certain number, you’ll be eligible for a Federal Pell Grant assuming you meet all other eligibility requirements."

You can find that at the link I've included below.

Good luck to you - I hope that helped.